The Goal: Reverse an invoice, payment, credit memo or deposit that was entered in error, and understand whether you’ll be voiding it (record kept) or deleting it (record removed).
Before You Begin:
- Whether you see Void or Delete is controlled by the Allow Deletion for (days) setting on your General Billing Settings page, at Finance > Administrative > Billing Settings. Inside that window you see Delete; outside it you see Void. If the value is 0 (best practice), Void is the only option. See Configure Default Finance Settings.
- Void keeps the record and reverses its accounting, so your audit trail stays complete. This is the recommended approach in all cases.
- Delete removes the record from the database permanently. For invoices it leaves a gap in your invoice numbering. It isn’t recommended as a financial tool.
- NOTE: There is no “unvoid”. If you void something in error, you’ll need to re-enter it.
What you can do with each transaction
| Transaction | Void | Delete | Neither is available when… |
|---|---|---|---|
| Invoice | Outside the deletion window | Inside the deletion window | A payment is applied to it. Unapply or remove the payment first. |
| Payment | Outside the deletion window | Inside the deletion window | It’s applied to an invoice (void only), deposited, or a credit card payment. Use a refund instead. |
| Credit memo | Outside the deletion window | Inside the deletion window | It’s applied to an invoice. Unapply it first. |
| Deposit | Not available | Inside the deletion window | It’s a credit card deposit, or you’re outside the window. |
Void or delete an invoice
- Go to Finance, Billing section, click All Sales/Invoices. To find the invoice quickly, filter the list to Open Invoices. (You can also open it from the contact’s Billing tab.)
- Click the hyperlink in the Ref # column for the invoice.
- Click Void, or Delete if the invoice is inside the deletion window.
- Click OK to confirm.
NOTE: A paid invoice can’t be voided or deleted. Delete or unapply the payment first, then return to the invoice.
Void or delete a payment
- Open the contact’s record and click the Billing tab. (You can also go to Finance, Billing section, click All Payments.)
- Click the Reference Number hyperlink for the payment.
- Click Void, or Delete if the payment is inside the deletion window.
- Click OK to confirm. If you deleted the payment, the balances on the invoices it was applied to are adjusted.
- To void, the payment must not be applied to an invoice. Unapply it first.
- Deposited payments: can’t be voided. To delete one, you’d have to delete the deposit, delete the payment, then recreate the deposit. This isn’t good accounting practice; check with your accountant first.
- Credit card payments: can’t be voided or deleted. Use a refund instead; see Refund a payment.
Void or delete a credit memo
- Go to Finance, Billing section, click All Credit Memos.
- Click the hyperlink for the credit memo.
- Click Void, or Delete if the credit memo is inside the deletion window.
NOTE: If the credit memo is applied to an invoice, unapply it before voiding.
Delete a deposit
- Go to Finance, Billing section, click All Deposits.
- Click the hyperlink in the Count Of Payments column for the deposit. (Deposit Date is plain text, not a link.)
- Click Delete.
- Click OK to confirm.
NOTE: If Delete isn’t showing, the deposit is outside the deletion window. You can temporarily raise Allow Deletion for (days) to delete it, but this affects all transactions, so set it back afterward. Credit card deposits can’t be deleted; if one needs correcting, contact your payment processor.
What happens in your accounting
- Voided invoice, accrual accounting: reversing entries are made to the revenue and accounts receivable accounts the invoice originally hit.
- Voided invoice, cash accounting: nothing is recorded, because nothing was recorded when the invoice was created.
- Deleted transactions: the record and its entries are removed entirely; nothing shows that it existed.
For credits, write-offs, refunds and overpayments under accrual accounting:
| Transaction type | What the action reverses | Accounting entries reversed |
|---|---|---|
| Credits | Reverses a transaction. | Accounts Receivable credited Revenue debited Deposit Account credited |
| Write-offs | Reverses a transaction. Generally treated as bad debt. | Accounts Receivable credited Revenue debited Deposit Account credited |
| Refunds | Reverses a payment. You can write off the open balance or leave the invoice open. | Accounts Receivable credited Revenue debited Deposit Account credited |
| Overpayments | Applied from the contact’s Billing tab to selected invoices. Once applied, an overpayment can only be adjusted if the payment hasn’t been deposited. | — |
Common Pitfalls
- Delete appears instead of Void: the transaction is inside the deletion window. Set Allow Deletion for (days) to 0 so Void is always the only option.
- Neither button appears: something is applied to it (a payment on the invoice, or the payment or credit memo is applied to an invoice), or it’s deposited or a credit card payment. Check the table above.
- Voided the wrong item: there’s no unvoid. Re-enter the transaction, and confirm the reference number before voiding.
- Gap in invoice numbers: caused by deleting an invoice. Void instead when you need to keep a record.
- Adjusting a deposited overpayment: not possible. Make sure overpayments are applied correctly before you run the deposit.